Uddrag fra Market Ear/Goldman /JPM/ Datatream
Performance of Magnificent 7 vs. S&P 493
Mag 7 account for one-half of the 57% rise in S&P 500 index since the end of 2022.
Source: Goldman
The Mag-7 have achieved stellar growth for a good reason
They have outperformed the index for a good reason – they have generated much stronger profit growth.
Source: Datastream
End of an EPS superiority era?
GS: “We expect Mag 7 premium EPS growth to compress from 30 pp in 2024 to 6 pp in 2025”
Source: Goldman
More on the narrowing
JPM: “The gap in earnings growth between the Magnificent 7 and the rest of the S&P 500 will continue to narrow”
Source: JPM
That tech capex boom
Feels a little too extreme. Booms lead to busts in capex cycles…
Source: Deutsche
MCG & Tech at the top of the trend channel
MCG & Tech earnings are slightly above their strong long-run trend channel as an AI boom adds to a typical cyclical recovery.
Source: DB
High PE – no problem?
MCG & Tech multiples have demonstrated very clearly that elevated multiples are not a constraint as long as earnings growth remains strong, but will that last forever?
Source: DB
Concentration & valuation
The valuations of these stocks have risen significantly…
Source: Compustat
The new Mag
Small caps beating the MAG by 5% over the past month…
